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Property loan approvals increase in Australia

Property investors are securing more loans. Australia's home loan approval numbers are up and it is mainly due to where investors are investing.

Much of the country's investors are moving from investing in the country's stock market to investing in the property market here. The stock market within the country fell to lows that hit record numbers not seen in 20 years.

Those looking to buy or build residential properties as well as apartment buildings rose by 2.3% in January over the numbers for December. This was reported on Tuesday by the Bureau of Statistics out of Sydney.
Lending provided to investors rose by 8.3%, which is the largest growth percentage seen in the last seven months.

Another area that has helped to push the loans in this direction is the number of home loan borrowers who are switching to fixed rate loans.

Another report shows that the median house price in the country rose by 12% in 2007. Still, high interest rates throughout Australia are holding the housing market back. The largest lender, Commonwealth Bank, allowed for an interest rate rise on the official cash rate announcement delivered last week. This means that the loans offered from CBA are as high as 9.32%. Variable home loan rates moved up by 0.35%.